Utilizing Blockchain Technology to Implement a Structured and Innovative Wine Industry

JavaScript frameworks make development easy with extensive features and functionalities. Here are our top 10 to use in 2022.
Written by
Shivani Tripathi
Published on
January 26, 2023

Having a prominent role in some cultures, wine is one of the most consumed beverages all around the world.

The traditional wine-making industry started in Europe and has grown into a large industry. Today, the average daily consumption of wine is around 1 and 2 glasses of wine per day for women and men, respectively.

As the industry grew, wine counterfeiting and adulterating also started to increase rapidly. Many well-known brands' value has been impacted by this.

A few industry leaders have thus initiated wine purchases through the blockchain. This way, the brand, and industry can maintain their authenticity and provenance along the wine supply chain via intergrading and establishing a transparent wine supply chain. Let's explore how. 

Wine Supply Chain Through Blockchain Technology

By integrating the supply chain, all the industry participants, from the farmers and original wine source to the consumer, are brought under the radar of blockchain.

Since market participants are scattered along the current ecosystem, communication becomes time-consuming, as the verification processes are carried out after back-and-forth to confirm the trade.

Thus, via blockchain, all the documentation and verification processes are completed in real-time, which increases product visibility. The blockchain eliminates relying on intermediaries, making the supply chain fast, secure, immutable, and less expensive.

Next, the market participants of the wine industry network are as follows:

  • Grape farmers
  • Wine production
  • Wine distributors
  • Brands and fillers
  • Wholesalers/retailers
  • End-users

By integrating blockchain into the wine supply chain, the industry not only reduces the cost and brings in traceability but also makes this supply chain process easier.

The diverse buyer ecosystem from individuals, hospitality participants, and auction houses can be abundantly benefited from the blockchain-induced wine supply chain.

Additionally, wine enterprises have introduced two traceability options to further improve the tracking processes.

  1. Barcode Wine Authentication System - Similar to centrally-managed RFID tags, barcodes are linked to the block, which stores and updates the datasets of the wine. The tagging process starts with the grape farmers and is updated with all the additional parties. This system ensures transparency about the wine's supply chain and buy or sales chains.
  2. Digital Thumbprint Wine Authentication System - To tackle wine adulteration, wine industry networks have incorporated digital thumbprints by imbibing QR codes for every bottle. By scanning these codes, individuals can read details such as the wine's origin, type, wine quality, place of wine production, grape sources, wine source, and more to cross-verify the authenticity.

How the Brand Chai Vault resolves Current Problems Through Blockchain

Chai Vault, a beverage manufacturing company based in San Francisco, is the first brand to use an anti-fraud solution for wine and other spirits trading to reduce the circulation of fake beverages.

Their individual wine bottles are encoded with a combination of RFID or QR codes, and as soon as the ownership is transferred, the buyers can verify the authenticity and provenance of every individual bottle on-chain.

The brand uses unique identification for each bottle which is registered and authenticated through The Chai Method (TCM) authenticator license. Other brands across countries have also obtained TCM certification by undergoing their inspection protocols.

NFTs and Wines

As soon the NFTs started taking a physical form, wine brands immediately hopped onto the trend. This strategy acted as a concrete foundation to enhance the authenticity of the wine industry as wine brands started to slowly integrate NFT-based wines.

This is done practically by connecting a digital NFT to the physical bottle, such that, once the NFT is bought, the buyer would automatically receive a physical wine bottle and vice versa. Thus, ownership of the NFT would be transferred after the purchase of the physical wine bottles.

  • Yao Family Wine was a pioneering brand to connect digital value for its wines with NFTs. Superstar NBA player Yao Ming, the founder of the wine brand, launched a limited-edition wine NFT with only 200 wine NFTs in circulation.
  • Hello Fam is an NFT brand that only provides physical wine bottles for NFT holders. The NFT was launched in 2021 with their Genesis Vintage 2021 collection. They have also introduced fractional NFTs for the purchase of 1 Grape Fan NFT, which consists of 6 wine bottles of 750 ml. These 6 bottles are tagged as seedling NFTs which shall also be sold in the marketplace as fractional NFTs.
  • The brand Bored Wine has parted with WiV technology, a blockchain-based trading platform to facilitate Bored Ape NFT holders to incorporate their Apes with the wine bottles. The NFT holders are also excited to use their digital NFT physically. Though the brand has neither affiliated nor collaborated with the Bored Ape Yacht Club team, only BAYC NFT holders can purchase the Bored Wine NFT.

In Conclusion

Wine production entities and wine brands are utilizing the potential of blockchain technology such that it has facilitated the efficient supply of premium wine quality and authentic wines. This may also result in the decline of the wine adulteration and counterfeiting market.

Latest posts

Subscribe to Our Newsletter

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.